Novell and EFF Team Up to Reform Software Patents

Organizations Will Jointly Lobby Governments and International Organizations

Novell to Support EFF 'Patent Busting' Initiative

San Francisco (Open Source Business Conference) - Novell and the Electronic Frontier Foundation (EFF) today announced they are teaming up to work on reforms to software patents worldwide.

"It is increasingly obvious that software patents are not a meaningful measure of innovation," said Jeff Jaffe, executive vice president and chief technology officer at Novell. "As a long-time innovator in the industry and a holder of many significant patents, we understand the rationale behind the patent system in general. But we believe that software patent system reform is necessary to promote software innovation going forward."

Novell and EFF will work to lobby governments and national and international organizations to develop legislation and policies around patents designed to promote innovation. A key area of focus will be the World Intellectual Property Organization (WIPO), where member governments of the United Nations meet to coordinate positions on intellectual property issues. Given the ease with which software ideas and code cross borders, a global approach to the issue is required.

In addition, Novell will contribute significant resources to EFF's ongoing "Patent Busting" project. Launched in 2004, the project is designed to attack patents that impose particularly heavy burdens on software developers and Internet users by identifying prior art that can be used to invalidate those patents and by pursuing invalidation of those patents through re-examination efforts.

"EFF has long been at the forefront in addressing the key challenges of the digital age, including worldwide intellectual property issues," said EFF Executive Director Shari Steele. "The support of Novell -- a company founded on the proprietary software development model but now strongly embracing the open source approach -- will be a great boon to our efforts to rid the industry of innovation-killing patents. We hope Novell's example encourages other software vendors to join the effort."

An early innovator in networking, word processing and messaging technologies, Novell holds more than 500 patents, many of which are fundamental to technologies in the market today. Having shifted its business to focus more on open source and open standards-based solutions, Novell recognizes the new model for innovation is open source, and the existing patent system is detrimental to open source development. Novell has already taken several steps to promote the use of patents to protect open source, including a 2004 pledge to use its own patents to defend against patent attacks on open source, and the contribution of patents and significant financial resources to Open Invention Network, an intellectual property company Novell co-founded in 2005 to promote Linux by using patents to create a collaborative environment.

"Today's announcement is a logical next step for Novell in its efforts to make patents a non-issue for the software community," said Nat Friedman, chief strategy and technology officer for open source at Novell. "Software patents hobble open standards and interoperability, impede innovation and progress, threaten the development of free and open source software, and have a chilling effect on software development. Our partnership with EFF is about creating a world where software developers and users do not to have to worry about patents."

The Electronic Frontier Foundation is the leading civil liberties organization working to protect rights in the digital world. Founded in 1990, EFF actively encourages and challenges industry and government to support free expression and privacy online. EFF is a member-supported organization and maintains one of the most linked-to websites in the world at http://www.eff.org/

About Novell, Inc.:

Novell, Inc. (Nasdaq: NOVL) delivers infrastructure software for the Open Enterprise. We are a leader in enterprise-wide operating systems based on Linux and open source and the security and systems management services required to operate mixed IT environments. We help our customers minimize cost, complexity and risk, allowing them to focus on innovation and growth. For more information, visit http://www.novell.com.

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